Strategy

Oleg Bagrin

President of NLMK

NLMK transforms ideas and resources into steel products. We source ideas from our employees, customers and business partners. We are striving to control our resources, taking a safe and responsible approach to their recycling and re-use. We produce clean and durable steel which is used in thousands of applications that improve our everyday lives.

Adopted in April 2013, NLMK Group’s Strategy 2017 is aimed at unlocking the Company’s hidden potential. It has a modular structure and includes projects designed to improve the Group’s operating efficiency and business processes, as well as to increase self-sufficiency in strategic resources.

A combination of operating and investment initiatives will help us ensure sustainable development in a changing market environment.

Key elements of Strategy 2017:

  • Improve operating efficiency throughout the production chain
  • Enhance vertical integration in key raw materials
  • Boost sales of high value-added products
  • Run environmental programmes
  • Implement process safety and human capital development programmes

Strategy2017

When taking into account capital expenditure in 2014, NLMK’s Strategy 2017 includes a total investment in development of $1 billion, targeting additional revenues of $1 million each year.

Strategy 2017 goals

  • Leading positions in strategic markets

    • Boost steel product sales by 2.5 million tonnes a year

    • Increase the share of domestic sales to 45%, versus 39% in 2013

    • Achieve target net gains of $190 million a year

  • World-class resource base

    • Achieve full self-sufficiency in iron ore

    • Reduce consumption of high-cost resources

    • Achieve target net gains of $480 million a year

  • Leadership in sustainability and safety

    • Minimise environmental impact

    • Ensure full compliance with occupational health and safety standards

    • Achieve industry-wide leadership in labour productivity supported by motivated, engaged personnel

  • Leadership in operational efficiency

    • Fully implement NLMK Production System

    • Achieve target net gains of $330 million a year